Property investment company PRS REIT remains in active discussions with potential acquirer Long Harbour after the REIT launched a strategic review in October.
PRS REIT is one of the UK’s largest build-to-rent firms with 5,425 completed homes as at 30 September 2024 and an Estimated Rental Value of £67.5 million per annum
The company launched its strategic review and formal sale process on 23 October 2024, opening its data room to interested parties shortly thereafter. PRS REIT’s advisers cast a wide net, engaging with numerous potential bidders across the market. Nineteen parties ultimately signed non-disclosure agreements and gained access to the company’s confidential business information.
Long Harbour is the front runner for a deal.
On 11 June 2025, PRS REIT confirmed receipt of a non-binding proposal from Long Harbour. Under the terms outlined, shareholders would receive 115 pence per share in cash for their holdings. The proposal remains subject to completion of due diligence and securing appropriate financing arrangements.
Discussions between PRS REIT and Long Harbour are ongoing. However, the company has cautioned that there can be no certainty an offer will materialise, nor regarding the final terms should one emerge.
All other non-binding proposals that were previously under consideration have now been withdrawn from the process.
Trading at 112p, The PRS REIT trades at a 19% discount to NAV. Should the deal go ahead at 115p, Long Harbour would bag itself a bargain.